Using Price as One Dimension of a Positioning Grid,or as a Key

question 25

True/False

Using price as one dimension of a positioning grid,or as a key dimension on which a product is positioned,is very useful because price is a key driver of any marketing strategy.

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Definitions:

Zero-Coupon Bonds

Zero-coupon bonds are debt securities that are issued at a discount to their face value and don’t pay interest before maturity; instead, investors receive the face value at maturity.

Face Value

The nominal or dollar value printed on a bond, bill, or other financial instrument, representing the amount due at maturity.

After-Tax Cost of Debt

The interest rate on a company's debt after taking into consideration the tax deductibility of interest expenses.

Zero Coupon Bond

A type of bond that does not pay interest during its life but is sold at a deep discount, paying its full face value at maturity.